KO&L LLP ANNOUNCES THAT IT IS INVESTIGATING SECURITIES LIABILITY CLAIMS AGAINST MICHAEL BAKER CORP.
KO&L LLP announces that is investigating possible unlawful conduct in connection with the accounting restatement announced by Michael Baker Corporation ("Michael Baker" or the "Company") (Amex: BKRs). Michael Baker Corporation, together with its subsidiaries, provides engineering and energy services for public and private sector clients in the United States and internationally. The Company's Energy segment provides a full range of services for operating third-party oil and gas production facilities worldwide. These services range from complete outsourcing solutions to specific services such as training, personnel recruitment, pre-operations engineering, maintenance management systems, field operations and maintenance, procurement, and supply chain management.
After the close of the market on February 22, 2008, Michael Baker announced that it would be restating its previously issued financial statements for the first, second and third quarters of 2007, because of "errors" in those financial statements. According to the Company, the purported errors related primarily to the improper recognition of revenue on domestic managed services projects in the Company's Energy business segment during these periods. Among other things, as a result of the restatement, Michael Baker's previously reported net income of $18.0 million for the first nine months of 2007 was materially overstated by as much as $12.5 million. The Company also disclosed that it was still evaluating whether the false financial reporting would impact its previously issued audited consolidated financial statements for the year 2006.
Upon that announcement, shares of Michael Baker fell from its close of $36.10 on February 22, 2008 to $27.57 the next day of trading -- a drop of nearly 24% on extraordinary volume. If you purchased Michael Baker's publicly traded securities during the period March 16, 2007 - February 22, 2008 and sustained losses, please Contact Us or call us at 202/261-3553 for a more thorough explanation of the investigation and potential claims that could be asserted against Michael Baker.
